Treasury:  FY 2019 Revenue Collections on Target through October

(TRENTON) – The Department of the Treasury reported that October revenue collections were on target through the first four months of FY 2019.  Collections for the major taxes totaled $2.277 billion, up $73.0 million, or 3.3 percent, compared to last October.  Year-to-date, total collections of $7.997 billion are up $663.3 million, or 9.0 percent above the same period last year. Adjusting for an accelerated gross income tax withholding payment, year-to-date growth in the major revenues is 7.3 percent, almost exactly matching the year-end target growth rate of 7.5 percent.

October collections for the Gross Income Tax (GIT), which is dedicated to the Property Tax Relief Fund, totaled $1.053 billion, up 14.3 percent above last October.  Year-to-date GIT collections of $3.638 billion are up 8.5 percent through the first four months of FY 2019.  However, October received one extra Wednesday withholding payment compared to last year.  Adjusting for that payment yields an underlying GIT growth rate of 4.9 percent year-to-date.

The Sales and Use Tax, the largest General Fund revenue source, reported $896.5 million in October, down 1.5 percent.  Year-to-date, sales tax collections of $2.470 billion are up 0.5 percent from the same period last year.  The second step of the sales tax rate reduction that began on January 1, 2018 will continue to impact collections through the end of 2018.  If not for the rate reduction, underlying growth in the sales tax through September would be 4.3 percent.

The Corporation Business Tax (CBT), the second largest General Fund revenue, brought in $79.3 million, 3.0 percent below last October.  Year-to-date, the CBT has collected $918.7 million, or 76.7 percent above last year.  In FY 2019, the CBT is expected to grow significantly due to substantial state and federal tax policy changes that influence the tax base and the timing of certain payments.

On the other hand, the Insurance Premiums Tax, which is received primarily through two payments each spring, was hit by sizeable refunds due to the transfer and utilization of certain Economic Development Authority tax credits, and is currently down $39.7 million in FY 2019.

Finally, Casino Revenues of $83.9 million are running 22.2 percent ahead of last year through the end of October.  Contributing factors include the addition of two new casinos, continued growth of internet gaming, and the addition of sports betting, which has contributed $2.39 million to the Casino Revenue Fund and another $1.46 million to the General Fund.

###